Concern for Global Recovery Goes Away, Helping Euro

The euro extended its rally today as the concerns that the troubles in Europe would slow the global economic recovery eased and the risk sentiment among the investors improved.

The economic growth in the U.S. and Asia weakens the impact of the European crisis on the global growth. The MSCI World Index of global stocks gained 0.3 percent, the fourth consecutive increase. Jean-Claude Trichet, the president of the European Central Bank, said yesterday that the bank would continue to buy the government bonds and to offer unlimited cash to aid in the fight with the crisis.

EUR/JPY traded at 111.17 as of 9:58 GMT today after opening at 110.74. EUR/USD traded near its opening level of 1.2122.

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